INTRODUCTION In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables

that are likely to influence the organizations supply and demand levels and its costs (Kotter and Schlesinger, 1 1! "ohnson and Scholes, 1 #$% &he 'radical and ongoing changes occurring in

society create an uncertain environment and have an impact on the function of the (hole organization' (&siakkiros, )**)$% + number of checklists have been developed as (ays of cataloguing the vast number of possible issues that might affect an industry% + ,-S& analysis is one of them that is merely a frame(ork that categorizes environmental influences as political, economic, social and technological forces% Sometimes t(o additional factors, environmental and legal, (ill be added to make a ,-S&-. analysis, but these themes can easily be subsumed in the others% &he analysis e/amines the impact of each of these factors (and their interplay (ith each other$ on the business% &he results can then be used to take advantage of opportunities and to make contingency plans for threats (hen preparing business and strategic plans (0yars, 1 Kotler (1 1! 1ooper, )***$%

2$ claims that ,-S& analysis is a useful strategic tool for

understanding market gro(th or decline, business position, potential and direction for operations% &he headings of ,-S& are a frame(ork for revie(ing a situation, and can in addition to S34& and ,orters 5ive 5orces models, be applied by
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companies to revie( a strategic directions, including marketing proposition% &he use of ,-S& analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports% ,-S& also ensures that companys performance is aligned positively (ith the po(erful forces of change that are affecting business environment (,orter, 1 26$% ,-S& is useful (hen a company decides to enter its business operations into ne( markets and ne( countries% &he use of ,-S&, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the ne( environment% PEST ANALYSIS ,-S& +nalysis is a simple but important and (idely-used tool that helps you understand the big picture of the Political, Economic, Socio-1ultural and Technological environment you are operating in% ,-S& is used by business leaders (orld(ide to build their vision of the future% It is important for these reasons7

0y making effective use of ,-S& +nalysis, you ensure that (hat you are doing is aligned positively (ith the forces of change that are affecting our

(orld% 0y taking advantage of change, you are much more likely to be successful than if your activities oppose it%

8ood use of ,-S& +nalysis helps you avoid taking action that is condemned to failure for reasons beyond your control%

,-S& is useful (hen you start operating in a ne( country or region% 9se of ,-S& +nalysis helps you break free of unconscious assumptions, and helps you :uickly adapt to the realities of the ne( environment% PEST analysis stands for 'Political, Economic, Social, and

Technological analysis' and describes a frame(ork of macro-environmental factors used in the environmental scanning component of strategic management% It is a part of the e/ternal analysis (hen conducting a strategic analysis or doing market research, and gives an overvie( of the different macro environmental factors that the company has to take into consideration% It is a useful strategic tool for understanding market gro(th or decline, business position, potential and direction for operations% &he gro(ing importance of environmental or ecological factors in the first decade of the )1st century have given rise to green business and encouraged (idespread use of the ,-S& frame(ork%

COMPOSITION

Political factors are ho( and to (hat degree a government intervenes in the economy% Specifically, political factors include areas such as ta/ policy, labour la(, environmental la(, trade restrictions, tariffs, and political stability% ,olitical factors may also include goods and services (hich the government (ants to provide or be provided (merit goods$ and those that the government does not (ant to be provided (demerit goods or merit bads$% 5urthermore, governments have great influence on the health, education, and infrastructure of a nation

Economic factors include economic gro(th, interest rates, e/change rates and the inflation rate% &hese factors have ma;or impacts on ho( businesses operate and make decisions% 5or e/ample, interest rates affect a firm<s cost of capital and therefore to (hat e/tent a business gro(s and e/pands% -/change rates affect the costs of e/porting goods and the supply and price of imported goods in an economy

Social factors include the cultural aspects and include health consciousness, population gro(th rate, age distribution, career attitudes and emphasis on safety% &rends in social factors affect the demand for a company<s products and ho( that company operates% 5or e/ample, an aging population may
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imply a smaller and less-(illing (orkforce (thus increasing the cost of labor$% 5urthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older (orkers$%

Technological factors include technological aspects such as =esearch and >evelopment activity, automation, technology incentives and the rate of technological change% &hey can determine barriers to entry, minimum efficient production level and influence outsourcing decisions% 5urthermore, technological shifts can affect costs, :uality, and lead to innovation%

APPLICABILITY OF T E FACTORS

9sing a ,-S& analysis helps a business to understand various macro environmental factors that they need to take into consideration (hen determining the decline or gro(th of a particular market% It is also a crucial tool for ascertaining business position, the potential of a business and the direction of business should be moving in to thrive in the marketplace% PEST ANALYSIS ON COCA!COLA COMPANY &he 1oca-1ola 1ompany (?@S-7 K4$ is a beverage retailer, manufacturer and marketer of non-alcoholic beverage concentrates and syrups% &he company is
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best kno(n for its flagship product 1oca-1ola, invented by pharmacist "ohn Stith ,emberton in 122A% &he 1oca-1ola formula and brand (as bought in 122 by +sa 1andler (ho incorporated &he 1oca-1ola 1ompany in 12 )% 0esides its namesake 1oca-1ola beverage, 1oca-1ola currently offers more than 6** brands in over )** countries or territories and serves 1%A billion servings each day% &he company operates a franchised distribution system dating from 122 (here &he 1oca-1ola 1ompany only produces syrup concentrate (hich is then sold to various bottlers throughout the (orld (ho hold an e/clusive territory% &he 1oca-1ola 1ompany o(ns its anchor bottler in ?orth +merica, 1oca-1ola =efreshments% &he 1oca-1ola 1ompany is head:uartered in +tlanta, 8eorgia% Its stock is listed on the ?@S- and is part of >"I+, SB, 6** Inde/, the =ussell 1*** Inde/ and the =ussell 1*** 8ro(th Stock Inde/% Its current chairman and 1-4 is Cuhtar Kent% &he 1oca-1ola 1ompany (as originally established in 12 ) as the "% S% ,emberton Cedicine 1ompany, a co-partnership bet(een >r% "ohn Stith ,emberton and -d Dolland% &he company (as formed to sell three main products7 ,emberton<s 5rench 3ine 1ola (later kno(n as 1oca-1ola$, ,emberton<s Indian Eueen Dair >ye, and ,emberton<s 8lobe 5lo(er 1ough Syrup%

In 12 F, the company became a stock company and the name (as changed to ,emberton 1hemical 1ompany% &he ne( president (as >% >% >oe (hile -d Dolland became the ne( Gice-,resident% ,emberton stayed on as the superintendent% &he company<s factory (as located at ?o% 1*H, Carietta St% &hree years later, the company (as again changed to ,emberton Cedicine 1ompany, another co-partnership, this time bet(een ,emberton, +% 4% Curphy, -% D% 0lood(orth, and "% 1% Cayfield% 5inally in 4ctober 12 2, the company received a charter (ith an authorized capital of I6*,***%&he charter became official on "anuary 16, 12 % 0y this time,

the company had e/panded its offerings to include ,emberton<s 4range and .emon gay -li/ir% 4ver the last fe( decades, innovation has become (idely recognized as both a ma;or goal of economic activity and one of the most important instruments through (hich organizations and countries gain and sustain competitive advantage in globally competitive marketplaces (5onseca )**)$% +t the organizational level, some claim that innovation is a key functional activity in organizations, in much the same (ay as marketing or finance is% 4thers suggest that innovation is a key survival strategy for organizations because it enables more rapid adaptation to turbulent environments% Innovation then becomes a primary indicator of an organization<s ability to adapt to its
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environment% 4ver the past fe( decades, this acclamation of innovation has become highly prominent as technological and scientific advancement, particularly in information and communication, increasingly affects every aspect of people<s lives (4den 1 H$%

Innovation is an important part of management for businesses% 3ithout innovation businesses (ould remain stale and it cannot create changes% Innovation makes things happen for business% &he innovation of communication particularly the onset of telecommunication gave individuals to put up companies that (ill sell telecommunication products% &he rise of telecommunication gave "B" 1o the chance to sho( ho( they aim to serve clients and provide services% " B " 1o has a uni:ue strategy that they use to manage their daily operations% &he change of strategy is a (ay for the company to sho( that they can innovate% " B " 1os change of strategy (ill help the company give better services to clients and illustrate (hat they can still do% &he telecommunication industry is the fastest gro(ing industry in almost every country (?oll 1 H$% &he telecommunication industry has been built

progressively and steadily on ma;or accomplishments in the progress of science and technology (Shy )**1$% &he telecommunication industry is one industry that continues to improve to meet the changing and complicating needs of clients%

&his industry has created products that include lo(-cost, broadband communication services and I& solutions such as internet based video conferencing% &his industry also brought about the resurgence of cell phones% 4ne business that competes in such industry and that company is " B" 1o% &his company is a retailer of 1ellular phones and other telecommunication products% "B" 1o (as founded by "oseph >avies and "ohnny .ee% " B " has around )** employees in its )* retail stores found in various countries% &he retail stores operate for 1* hours (ith some operating for 1) hours depending on the location% &he personnel have daily shifts that change constantly% 1oca-1ola is the (orlds largest soft-drink company (hich manufactures and markets non-alcoholic beverage concentrates and syrups% 0esides the (ell kno(n 1oca-1ola and 1oke brands the company offers more than 6** brands in over )** countries or territories and serves 1%A billion servings each day% It is head:uartered in +tlanta, 8eorgia% St"engths 1% 1oca-1ola is the (orlds most valuable brand and has strong brand loyalty% )% 3ide variety of 1oca-1ola products is sold in the restaurants, stores and vending machines over )** countries%

#% 1oke is the dominant market leader of the global soft-drink industry right through the )*th century% F% 1oke primarily competes on advertising and differentiation and has the high market share% 6% 1oca-1ola has enormous distribution and production facilities of nonalcoholic beverages and related products% A% "oint venture (ith ?estle has resulted in the formation of 0everage ,artners 3orld(ide (0,3$% H% &he company has strong financial position and profits throughout the history% Its average =4- (return on e:uity$ for the past five years is #H%*2J (hereas its =41 (return on capital$ is ##%AJ% 2% 1oca-1ola has the heavy advertising and promoting activities% % Core than H* percent of revenue comes from outside the 9nited States% 1*%-normous number of loyal customers and brand e:uity all over the (orld% #ea$nesses 1% ?e( coke formula leading to a backlash (hich results in bad image of coke%

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)% &he company is facing high burden of e/ternal debts for the last fe( years% In )**), long-term debt of the company (as )H** million dollars% #% ,roduct offering is restricted to beverages% F% In ?ovember )** , because of a dispute over (holesale prices of 1oca-1ola goods, 1ostco blocked the replenishment of their shelves (ith >iet 1oke and coke% 6% 1oca-1ola has discontinued its many products after fe( years of launching such as ?e( 1oke, 1oca-1ola (ith .emon, 1oca-1ola (ith .ime, 1oca1ola 0lak, etc% (hich result in bad image of the brand% A% 1oke has taken less aggressive market standing in todays changing economic surroundings% O%%o"t&nities 1% 0ottled (ater drinking has increased 11 percent% )% 1onsumers prefer to drink ne( smaller beverage products that are not sold on a mass scale% #% 4ne of the biggest opportunities is to diversify into the non-carbonated drinks such as coffee, (ater, ;uices, etc%

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F% &he company can offer the hygienic products due to increasing number of health conscious consumers% 6% -uropean market and 1hina sho( marvelous potential for gro(th% A% &he economic conditions are improving globally after economic meltdo(n )**H-1*% H% >iversify into complementary food products (hich (ill ultimately increase the drink consumption% 2% 1oca cola should increase its partnership (ith fast food chains% Th"eats 1% &here is .o( gro(th rate in the carbonated drinks market in ?orth +merica (hich is the main market of 1oca-1ola% )% &here is a problem (ith 1oke to raise its prices by an edge that (ould permit it to keep pace (ith inflation% #% Duge numbers of substitutes such as beer, (ater, ;uices, coffee etc are accessible to the end consumers% F% ,epsi is the strong competitor (hich competes (ith advertising and differentiation%
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6% Since the consumer lifestyle is changing rapidly and they are becoming more health conscious therefore there demand is shifting to(ards non-carbonated products such as ;uices, tea and bottled drinks% A% Cany smaller players are furious competitors (hich are also creating the competition severe% H% &he prices of ra( material such as sugar and metals used in manufacturing of cans are increasing rapidly% 2% 1arbonated drink revenues have been decreasing due to association of sugar to obesity and lofty fructose lump syrup to heart disease% % ,epsi has more diversified selling beverage and food products as compared to the 1oca 1ola% 1*%1oca 1ola is facing various regulations in respective countries around the globe%

COMPANY O'ER'IE# &he 1oca-1ola 1ompany (1oca-1ola$ is a leading manufacturer, distributor and marketer of ?on-alcoholic beverage concentrates and syrups, in the (orld% &he company o(ns or licenses more than F** brands, including diet and light
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beverages, (aters, ;uice and ;uice drinks, teas, coffees, and energy and sports drinks% &he company operates in more than )** countries% +ppro/imately HFJ of its products are sold outside of the 9S% &he company is head:uartered in +tlanta, 8eorgia and employs H1,*** people as of September )**A%&he company recorded revenues of I)F,*22 million during the fiscal year ended >ecember )**A,an increase of F%#J over )**6% &he increase in revenue (as primarily due to increase in sales of 9nit cases of companys products from appro/imately )*%A billion unit cases of the companys ,roducts in )**6 to appro/imately )1%F billion unit cases in )**A, the increase in the ,rice and ,roductKgeographic mi/ also boosted the revenue gro(th% &he company-(ide gallon sales and unit case volume both gre( FJ in )**A (hen compared to )**6% &he operating profit of the company (as IA,#*2 million during fiscal year )**A, an increase of #%HJ over )**6% &he net profit (as I6,*2* million in fiscal year )**A, an increase of F%#J over )**6% S#OT ANALYSIS &he 1oca-1ola 1ompany (1oca-1ola$ is a leading manufacturer, distributor and marketer of ?on-alcoholic beverage concentrates and syrups, in the (orld% &he opportunities of the company is enormous% Do(ever, the company is threatened by intense competition (hich could have an adverse impact on the companys market share%
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St"engths #o"l()s lea(ing *"an( 1oca-1ola has strong brand recognition across the globe% &he company has a leading brand value and a strong brand portfolio% 0usiness-3eek and Inter-brand, a branding consultancy, recognize 1oca-1ola as one of the leading brands in their top 1** global brands ranking in)**A%&he 0usiness 3eek-Inter-brand valued 1oca-1ola at IAH,*** million in )**A% 1oca-1ola ranks (ell ahead of its close competitor ,epsi (hich has a ranking of )) having a brand value of I1),A * million 5urthermore! 1oca-1ola o(ns a large portfolio of product brands% &he company o(ns four of the top five soft drink brands in the (orld7 1oca-1ola, >iLt 1oke, Sprite and 5anta% Strong brands allo( the company to introduce brand e/tensions such as Ganilla 1oke, 1herry 1oke and 1oke (ith .emon% 4ver the years, the company has made large investments in brand promotions% 1onse:uently, 1oca-cola is one of the best recognized global brands% &he companys strong brand value facilitates customer recall and allo(s 1oca-1ola to penetrate ne( markets and consolidate e/isting ones%

La"ge scale o+ o%e"ations

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3ith revenues in e/cess of I)F billion 1oca-1ola has a large scale of operation% 1oca-1ola is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the (orld% 1oco-1ola is selling trademarked beverage products since the year 122A in the 9S% &he company currently sells its products in more than )** countries% 4f the appro/imately 6)billion beverage servings of all types consumed (orld(ide every day, beverages bearing trademarks o(ned by or licensed to 1oca-1ola account for more than 1%F billion% &he companys operations are supported by a strong infrastructure across the (orld% 1oca-1ola o(ns and operates #) principal beverage concentrates andKor syrup manufacturing plant located throughout the (orld% In addition, it o(ns or has interest in #H operations (ith 6 principal beverage bottling and canning plants located outside the 9S% &he company also o(ns bottled (ater production and still beverage facilities as (ell as a facility that manufactures ;uice concentrates% &he companys large scale of operation allo(s it M to feed upcoming markets (ith relative ease and enhances its revenue generation capacity%

Ro*&st "e,en&e g"o-th in th"ee segments 1oca-colas revenues recorded a double digit gro(th, in three operating segments% &hese three segments are .atin +merica, N-ast, South +sia, and ,acific
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=im and 0ottling investments% =evenues from .atin +merica gre( by )*%FJ during fiscal )**A, over )**6% >uring the same period, revenues from N-ast, South +sia, and ,acific =im gre( by 1*%AJ (hile revenues from the bottling investments segment by 1 % J% &ogether, the three segments of .atin +merica, N-ast, South +sia, and ,acific =im and bottling investments, accounted for #F%2J of total revenues during fiscal )**A% =obust revenues gro(th rates in these segments contributed to top-line gro(th for 1oca-1ola during )**A%

#ea$nesses Negati,e %&*licity &he company received negative publicity in India during September )**A%&he company (as accused by the 1enter for Science and -nvironment (1S-$ of selling products containing pesticide residues% 1oca-1ola products sold in and around the Indian national capital region contained a hazardous pesticide residue% &hese pesticides included chemicals (hich could cause cancers, damage the nervous and reproductive systems and reduce bone mineral density% Such negative publicity could adversely impact the companys brand image and the demand for 1oca-1ola products% &his could also have an adverse impact on the companys gro(th prospects in the international markets%

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Sl&ggish %e"+o"mance in No"th Ame"ica 1oca-1olas performance in ?orth +merica (as far from robust% ?orth +merica is 1oca-1olas score market generating about #*J of total revenues during fiscal )**A% &herefore, a strong performance in ?orth +merica is important for the company% 1oca-1ola 1ompany, &he S34& +nalysis ?orth +merica on the sale of unit cases did not record any gro(th% 9nit case retail volume in ?orth +merica decreased 1J primarily due to (eak sparkling beverage trends in the second half of )**A and decline in the (arehouse-delivered (ater and ;uice businesses% Coreover, the company also e/pects performance in ?orth +merica to be (eak during )**H%Sluggish performance in ?orth +merica could impact the companys future gro(th prospects and prevent 1oca-1ola from recording a more robust topline gro(th% Decline in cash +"om o%e"ating acti,ities &he companys cash flo( from operating activities declined during fiscal )**A% 1ash flo(s from operating activities decreased HJ in )**A compared to )**6% ?et cash provided by operating activities reached I6, 6H million in )**A, from IA,F)# million in )**6% 1oca-1olas cash flo(s from operating
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activities in )**A also decreased compared (ith )**6 as a result of a contribution of appro/imately I) 1A million to a ta/-:ualified trust to fund retiree medical benefits% &he decrease (as also the result of certain marketing accruals recorded in )**6 %>ecline in cash from operating activities reduces availability of funds for the companys investing and financing activities, (hich, in turn, increases the companys e/posure to debt markets and fluctuating interest rates%

OPPORTUNITIES Ac.&isitions 5or the last one year, 1oca-1ola has been aggressively adopting the inorganic gro(th path% >uring )**A, its ac:uisitions included Kerry 0everages, (K0.$, (hich (as subse:uently, reappointed 1oca-1ola 1hina Industries (111I.$% 1oca-1ola ac:uired a controlling shareholding in K0., its bottling ;oint venture (ith the Kerry 8roup, in Dong Kong% &he ac:uisition e/tended 1oca1olas control over manufacturing and distribution ;oint ventures in nine 1hinese
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provinces% In 8ermany the company ac:uired +pollinaris (hich sells sparkling and still mineral (ater in8ermany% 1oca-1ola has also ac:uired a 1**J interest in &I1 Doldings, a bottling company in South +frica% 1oca-1ola also made ac:uisitions in +ustralia and ?e( Oealand during )**A%&hese ac:uisitions strengthened 1oca1olas international operations% &hese also give 1oca-1ola an opportunity for gro(th, through ne( product launch or greater penetration of e/isting markets% Stronger international operations increase the companys capacity to - penetrate international markets and also gives it an opportunity to diversity its revenue stream%

/"o-ing *ottle( -ate" ma"$et 0ottled (ater is one of the fastest-gro(ing segments in the (orlds food and beverage market o(ing to increasing health concerns% &he market for bottled (ater in the 9S generated revenues of about I16%A billion in )**A% Carket consumption volumes (ere estimated to be #* billion liters in )**A% &he markets consumption volume is e/pected to rise to #2%A billion units by the end of )*1*% &his represents a 1+8= of A% J during )**6-)* 1*% In terms of value, the bottled (ater market is forecast to reach S1 %# billion by the end of )*1*% In the bottled (ater market, the
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revenue of flavored (ater ((ater-based, slightly s(eetened refreshment drink$ segment is gro(ing by about I1* billion annually% &he companys >asani brand (ater is the third best-selling bottled (ater in the 9S% 1oca-1ola could leverage its strong position in the bottled (ater segment to take advantage of gro(ing demand for flavored (ater%

/"o-ing

is%anic %o%&lation in US

Dispanics are gro(ing rapidly both in number and economic po(er% +s a result, they have become more important to marketers than ever before% In )**A, about 11%A million 9 S households (ere estimated to be Dispanic% &his translates into a Dispanic population of about F)million% &he 9S 1ensus estimates that by )*)*, the Dispanic population (ill reach A* million or almost 12J of the total 9S population% &he economic influence of Dispanics is gro(ing even faster than their population% ?ielsen Cedia =esearch estimates that the buying po(er of Dispanics (ill e/ceed I1 trillion by )**2- a 66J increase over )**# levels% 1oca-1ola has e/tensive operations and an e/tensive product portfolio in the 9S% &he company can benefit from an e/panding Dispanic population in the 9S, (hich (ould translate into higher consumption of 1oca-1ola products and higher revenues for the company%
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T REATS Intense competition 1oca-1ola competes in the nonalcoholic beverages segment of the commercial beverages industry% &he company faces intense competition in various markets from regional as (ell as global players% +lso, the company faces competition from various nonalcoholic sparkling beverages including ;uices and nectars and fruit drinks% In many of the countries in (hich 1oca-1ola operates, including the 9S, ,epsi1o is one of the companys primary competitors% 4ther significant competitors include ?estle, 1adbury Sch(eppes, 8rouped ?4?- and Kraft 5oods% 1ompetitive factors impacting the companys business include pricing, advertising, sales promotion programs, product innovation, and brand and trademark development and protection% Intense competition could impact 1oca-1olas market share and revenue gro(th rates%

De%en(ence on *ottling %a"tne"s 1oca-1ola generates most of its revenues by selling concentrates and syrups to bottlers in (hom it doesnt have any o(nership interest or in (hich it has no controlling o(nership interest% 1n)**A, appro/imately 2#J of its (orld(ide unit case volumes (ere produced and distributed by bottling partners in (hich the
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company did not have any controlling interests% +s independent companies, its bottling partners, some of (hom are publicly traded companies, make their o(n business decisions that may not al(ays be in line (ith the companys interests% In addition, many of its bottling partners have the right to manufacture or distribute their o(n products or certain products of other beverage companies% If 1oca- 1ola is unable to provide an appropriate mi/ of incentives to its bottling partners, then the partners may take actions that, (hile ma/imizing their o(n short-term profits, may be detrimental to 1oca-1ola% &hese bottlers may devote more resources to business opportunities or products other than those beneficial for 1oca-1ola% Such actions could, in the long run, have an adverse effect on 1oca-1olas profitability% In addition, loss of one or more of its ma;or customers by anyone of its ma;or bottling partners could indirectly affect 1oca1olas business results% Such dependence on third parties is a (eak link in 1oca1olas operations and increases the companys business risks%

Sl&ggish g"o-th o+ ca"*onate( *e,e"ages 9S consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious% &his has led to a decrease in the
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consumption of carbonated other s(eetened beverages in the 9S% &he 9S carbonated soft drinks market generated total revenues of IA#% billion in )**6, this representing a compound annual gro(th rate (1+8=$ of only *%) J for the five-year period spanning )** 1-)**6% &he performance of the market is forecast to decelerate, (ith an anticipated compound annual rate of change (1+8=$ of -*%#J for the five-year period )**6- )*1* e/pected to drive the market to a value of IA)% billion by the end of )*1*%Coreover in the recent years, beverage companies such as 1oca-1ola have been criticized for selling carbonated beverages (ith high amounts of sugar and unacceptable levels of dangerous chemical content, and have been implicated for facilitating poor diet and increasing childhood obesity% Coreover, the 9S is the companys core market% 1oca-1ola already e/pects its performance in the region to be sluggish during )**H% 1oca-1olas revenues could be adversely affected by a slo(do(n in the 9S carbonated beverage market%

CONCLUSION ,-S& analysis looks at the e/ternal business environment and is an appropriate strategic tool for understanding the 'big picture' of the environment in (hich business operates, enabling the company to take advantage of the
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opportunities and minimize the threats faced by their business activities% 3hen strategic planning is done correctly, it provides a solid plan for a company to gro( into the future% 3ith a ,-S& analysis, the company can see a longer horizon of time, and be able to clarify strategic opportunities and threats that the organisation faces% 0y looking to the outside environment to see the potential forces of change looming on the horizon, firms can take the strategic planning process out of the arena of today and into the horizon of tomorro(%

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REFERENCES 0yars, .% (1 1$ Strategic Canagement, 5ormulation and Implementation P

1oncepts and 1ases, ?e( @ork7 Darper1ollins% "an, @% ()**)$ + three-step matri/ method for strategic marketing management, Carketing Intelligence and ,lanning, Gol% )* Issue 6, pp%)A -)H)% "ohnson, 8% and Scholes, K% (1 #$ -/ploring 1orporate Strategy P &e/t and

1ases, Demel Dempstead7 ,rentice-Dall% Kotter, "% and Schlesinger, .% (1 0usiness =evie(, pp%)F-) % 1apron, ?% and 8lazer, =% (1 2H$ Carketing and technology7 a strategic coalignment, "ournal of Carketing, Gol% 61 Issue #, pp%1*-)1% 1ooper, .% ()***$ Strategic marketing planning for radically ne( products, "ournal of Carketing, Gol% AF Issue 1, pp%1-16% Kotler, ,% (1 2$ Carketing Canagement P +nalysis, ,lanning, Implementation, 1$ 1hoosing strategies for change, Darvard

and 1ontrol, th -dition, -ngle(ood 1liffs7 ,rentice-Dall%

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,earce, "% and =obinson, = ()**6$ Strategic Canagement, th -dition, ?e( @ork7 Cc8ra(-Dill% ,orter, C% (1 26$ 1ompetitive +dvantage, ?e( @ork7 5ree ,ress% =obinson, S%, Dichens, =% and 3ade, >% (1 H2$ &he directional policy matri/-tool for strategic planning, .ong =ange ,lanning "ournal, Gol% 11, pp%2-16% &hompson, "% ()**)$ Strategic Canagement, Fth -dition, .ondon7 &homson% &siakkiros + ()**)$ 'Strategic planning and education7 &he case of 1yprus', &he International "ournal of -ducational Canagement 0radford )**)

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